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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
We base income limits on the FPL published in the Federal Register by the Department of Health and Human Services (HHS). Regardless of the age of family members, poverty levels remain the same. Income after exclusions, whether earned and unearned, must be less than 150% of the FPL (based on size of the household) for subsidy eligibility. One set of poverty levels applies to the 48 contiguous States and the District of Columbia. Alaska and Hawaii have separate and slightly higher poverty levels.